2016 ORGANIC COTTON MARKET REPORT - Cision
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ORGANIC COTTON MARKET REPORT 2016
WHAT’S INSIDE
Many of the topics and themes in this report are interrelated. To help you navigate in a way that Cover: Dedicated
best suits you, we have hyperlinked these parts of the report to make it more interactive.
Description: Ghandi T-shirt in 100% organic and
Fairtrade certified cotton from Swedish brand
Textile Exchange - Driving Transformation • 3 Dedicated.
Patagonia - 20 Years Organic • 4 Meet the organic consumer. He's a "millennial" holding
down his first job. He's likely to be informed and active in
People In Business • 6 social media circles. He's going for organic, fairly traded
chocolate, beer, and bananas. Rana Plaza put "clothing" on
How To Build A Truly Resilient Organic Cotton Business • 7 his radar, and he wears his values on his chest. He spends
Snapshot Of The Organic Sector • 8 more time on youtube than the telly and he's more likely
to swipe a screen than push a button. And yes he's tracing
Organic Cotton Annual Savings • 9 his T-shirt back to the farm.
Market Review • 10 Farm Review • 31 Standards & Collective Action • 65
Certification • 61
Organic Cotton Market • 11 Global Production Trends • 32 OCS & GOTS Top 10 Countries • 62 Mobilizing Around Integrity • 68
Top Users By Volume • 12 Cotton Pricing • 33 Standards Update • 63 Organic Cotton Accelerator • 70
Top Users By Growth • 13 Africa • 35 Chetna Coalition • 71
Race To The Top • 14 Central Asia • 41 Organic Cotton Round Table • 72
100% Club • 15 China • 42 Working in Partnership • 74
Organic Fair Trade Top 10 • 16 India • 44
Organic Cotton By Market Latin America • 53
Sector • 17
Middle East & North Africa • 55
Pakistan • 57
Turkey • 58
USA • 59
Methodology • 75
Definitions & Resources • 76
TE Organic Cotton Market Report © 2016 •• 2
TE - DRIVING TRANSFORMATION
Unfortunately, the industry is still dancing around the true cost of more sustainable
fibers. This is not just the case with organic, but across the board, with so many of the
preferred fibers. “Not a penny more” is still heard. “Not a penny more” has created the
pollution and poverty that we are experiencing. It is time to get to the heart of the matter
– is it really about legitimate costs or just greed? While I applaud the steps that some
of the initiatives are taking to improve yields (a few cents more may take a farmer from
extreme poverty to just poverty) I have to say it just isn’t enough.
So, when I talk to people about organic cotton, I’m often asked “but does it really have a
positive effect?” The answer is yes! I truly believe that it can be a market driven solution,
and we have so many great examples – one in particular that is close to my heart.
It’s my pleasant task to welcome you to the 2016 Organic Cotton Market Report. Every
year Textile Exchange (TE) charts how the market is developing. Our core belief is Let’s step back in time; the year is 1996 and Patagonia had just launched their 100
that organic cotton production systems can be a key solution in creating market percent organic cotton sportswear range. They knew it was a risk. They did it anyway,
transformation, which will in turn create strong and resilient communities where we are knowing they risked making less money than they would if they used chemically grown
proactively protecting the environment. These communities serve as examples for the cotton. But they also knew the environmental benefits far outweighed the financial risk,
social-justice and economic impacts of organic cotton. so they went ahead. You can read Jill Dumain’s compelling story on page four. I’d like to
wish Patagonia a happy 20th organic birthday, to thank them for their leadership, and
In the past year, we’ve seen increased understanding that, with the proper foundations congratulate everyone there for all that they have done to raise awareness and prove
of transparency and integrity, organic cotton programs deliver real benefits to the least that there is a different way to run a company.
prosperous parts of the supply chain, especially smallholder farmers.
If you haven’t started creating a fiber and materials strategy that takes you toward a
You’ll see some wonderful examples of the leaders that are creating and driving the positive impact, it is time to do so. If you need to take your strategy one step further and
transformation of the cotton industry in this report. At the same time, we must step embed it into the DNA of your organization, it is time to do so. And, if you are one of our
up and truly embed these successes more deeply within the company structures. We amazing pioneers and leaders – KEEP UP THE GREAT WORK!
have to consider the way we do business, and “change” is not enough! We change our
socks – but they are still socks. In the same way, we substitute one fiber for another Thanks, and hope to see you in Hamburg for our annual Textile Sustainability
without addressing the business model. Transformational change must be the way we Conference.
do business.
La Rhea Pepper
Managing Director, Textile Exchange
TE Organic Cotton Market Report © 2016 •• 3
PATAGONIA - 20 YEARS ORGANIC
working on environmental issues was beyond excited, been no. Since the early days of GMOs, we’ve repeatedly
but the 50 percent of me responsible for delivering expressed our concerns about the potential unintended
fabrics that met all of our specifications for design, consequences of splicing one life form with another. And
quality, cost and on-time-delivery was quite nervous. we’re dismayed that the expanded use of genetically
With youth on my side then, I believed we could do modified cotton seeds has led to the loss of cotton
anything we set our minds on achieving. varieties that have stood the test of time.
We made the change after learning about the amount of One of our goals when we converted our line to organic
pesticides being used to grow conventional cotton–more cotton was to inspire other companies to do the same;
than any other crop as a percentage at that time. We took we failed at this. But with the growth we’ve seen in
tours of cotton farms all over the world and didn’t like recent years in the organic food industry, and many more
what we saw. Though crop-duster pilots were among people understanding the differences between organic
the most talented, I personally saw chemicals meant for and conventional agriculture, maybe we need to try
cotton fields land on trucks of watermelons and in the again.
California aqueduct, which transports drinking water
throughout the state. Now with age and experience on my side, I still believe
we can do anything we set our minds on achieving.
Less than one percent of all cotton being grown was
grown organically, so we had to be creative in finding Jill Dumain
it–and even more creative in convincing our supply Director of Environmental Strategy, Patagonia
chain partners to take the risk with us. With such a
small global inventory, if they ran into problems during [ è Sector Focus: Outdoor ]
production it could be disastrous, as they didn’t have
much replacement cotton to draw from. We had to build
our organic cotton supply chain literally from the ground
up without the current trade associations or the Internet
After seeing how conventional cotton was grown, we to help. It was hard work.
made the switch in ‘96.
At that time, genetically modified cotton also represented
Twenty years ago we began making all of our cotton less than one percent of the cotton grown worldwide.
products with organically grown cotton. Our switch It was an emerging technology. We have been asked
was preceded by about six years of research and many times over the years if we support the use of
experimentation. I have often told people over the years genetically modified cotton and the answer has always
that when we made this decision the 50 percent of me
TE Organic Cotton Market Report © 2016 •• 4
PATAGONIA : 20 YEARS OF ORGANIC COTTON
1991 1994 1996 2006 2016
Wrote mission Board decided All cotton products Launched e-fibers Celebrating 20 years
statement that to end the use of were fully converted campaign: recycled/ of organic cotton.
established
Patagonia’s
conventional cotton
and begin the
to 100% organic.
1998 2001 recyclable polyester,
hemp, organic 2014
Launched
commitment to conversion to 100% Introduced cotton, organic Introduced Fair
environmental
addressing the organic cotton. Patagonia’s 100% wool, chlorine-free Trade Certified™
environmental crisis. organic cotton
campaign against
GMOs. wool. 2009 products for the first
time.
denim jeans. Co-founded
Sustainable Apparel
Coalition.
1992
Introduced first
organic cotton
garment.
1990s 2000s 2010s
1992 2000 2002 2008 2014 2015
Established Co-founded Organic Introduced Patagonia’s
Commenced FLA accredited Introduced limited
1991 cotton farm tours
for Patagonia staff
1995 1998 partnership with
bluesign® to evaluate
Exchange (now
Textile Exchange)
Patagonia’s Social edition reclaimed
cotton garments
100% organic cotton
denim now made
Distributed monthly Launched “Clean and reduce resource Compliance
Commissioned to learn about the as part of Truth to with less impactful
“Organic Cotton Air, Earth, Water” consumption and to Program.
Life Cycle Analysis benefits of organic Materials Collection. dyeing and Fair Trade
Rag” as education organic cotton assist with chemical
on cotton, wool, cotton farming; Certified® sewing.
leading up to launch campaign. management.
polyester and nylon. cotton farm tours
of 100% organic in
program runs
Spring 1996.
through 1999. 2001
Became a Fair
Labour Association
(FLA) Participating
Company.
TE Organic Cotton Market Report © 2016 •• 5
PEOPLE IN BUSINESS
Portfolios Are Expanding
Increasingly more companies are conscious of the need to do something. Companies
are taking a more strategic approach to raw materials, and expanding their portfolio
of preferred options. For cotton, we know (based on LCA data and experience) that
fairly traded organic cotton has clear and positive impacts on important sustainability
parameters including water, climate and communities, and there are signs of expansion
in coupling organic and Fair Trade certification.
Return On Investment For Farmers
Yet this report shows that to grow the supply base of organic cotton with integrity, to
meet demand, more work needs to be done to build business models that are based on
a triple bottom line: environmental, social, and economic. A return on investment (ROI)
for organic farmers will help entire countries build resilience and contribute to meeting
the Sustainable Development Goals.
People Centered Business Models
ARMEDANGELS
This report is packed with good news but also advocates for the work that still needs
As we deepen our understanding of sustainability, it’s clear that achieving the right to be done to address integrity, transparency, pricing and other business-related issues.
mix is important. Whether it’s examining the eco-credentials of fibers and materials, or As we work together to solve environmental problems, it’s important to keep people
researching the economic and social impact of sourcing decisions, or deciding which (farmers, factory workers and consumers) in mind.
crops to plant that year, we all need to consider the best route forward in a whole
variety of situations and, from that, decide how to apportion our efforts to achieve the To paraphrase the words of German economist, E.F. Schumacher, we must do “Business
best results. A retailer needs to balance its efforts between materials, countries and as if People Mattered,” otherwise, what are we in business for?
stages in the supply chain. For a farmer it could be balancing crop ratios to maximize
market rewards, food security, and soil fertility needs. Liesl Truscott
Director of Fiber and Materials Stategy, Textile Exchange
TE Organic Cotton Market Report © 2016 •• 6
HOW TO BUILD A TRULY RESILIENT
ORGANIC COTTON BUSINESS
1
Make sure there is a
chain of custody to
2
Map your organic
cotton supply chain
3
Find out where
your organic cotton
4
Learn about cotton
pricing and make sure
5
Plan ahead. If you know
what you need and the
6
Invest in capacity
building, such as
back up your content and trace back to the originates from and, the organic differential volumes you need it in farmer training, seed
and product claims. The farm. Build a network if possible, build you pay gets to the you can build in more breeding, infrastructure
Global Organic Textile of trusted suppliers a geographically farmers. Work with consistency, which helps and business expertise.
Standard (GOTS) and and manage the risk diverse portfolio. your suppliers on how your suppliers plan and This will in turn improve
the Organic Content and reward of your Each sourcing region to do this. It’s critical to reduces risk for farmers availability and quality of
Standard (OCS) are investment. has its sustainability building the supply base (and your company). organic cotton and pay
reliable methods issues to resolve, and and keeping farmers off in the long term.
of chain of custody opportunities to pursue. incentivized.
verification.
7
Partner community
projects that lead to
8
Go Organic Fair Trade.
Combine the benefits
9
Visit your sourcing
regions. Learn first-hand
10
Identify partnerships
and build value creation
11
Join a collective
action initiative such
12
Join Textile Exchange’s
Organic Cotton Round
increased income, of organic cotton about the opportunities networks. Explore ways as the Organic Cotton Table – be inspired
reduced risk, and agriculture with the and challenges faced by to work within sourcing Accelerator (OCA), and energized. Build a
resilience for farming pricing and social the farmers. Get to know and supply networks. or the Organic Fiber network of like-minded
families. requirements of the Fair how things work and Talk to the Chetna Council (OFC). Collective others who are also
Trade standard. how to be a supportive Coalition to find out action helps accelerate wanting to build a truly
business partner. how! and scale-up impact. resilient organic cotton
business!
TE Organic Cotton Market Report © 2016 •• 7
SNAPSHOT OF THE ORGANIC SECTOR
Overall, the organic sector is expanding and it’s useful Certified Land Market
to compare the growth indicators of organic cotton
The global organic market is growing and
with those of organic products as a whole.
43.7m ha
organic farmland
consumer demand is increasing.
Since 1999, on a world scale, there has been a four-fold
$80b USD
increase in organic agricultural land (from 11 million
to 43.7 million hectares in 2014) and there is positive 172 countries
in organic farming
global organic food market 2014
news of continued growth.
(up from 170 in 2013) +11%
market growth in the U.S.
The infographics on this page provide a snapshot of
+0.5m ha
1
the organic sector in 2014 (the most recent statistics
we have). from 2013 Top 3 Countries (Market)
$29.8b USD
Farmers Top 3 Countries (Land) USA
The number of organic producers is 17.2m ha $8.7b USD
increasing Australia Germany
2.3m
organic farmers Argentina
3.1m ha $5.3b USD
France
+13%
from 2013 USA
2.2m ha
China
$4.1b USD
Top 3 Countries (Farmers)
Key Producing Regions (Land)
+40%
unprecedented growth in Sweden
650,000 Europe
India 27%
190,552
11.6m ha
3 yrs
Uganda
successive growth in the UK 2012-2014
Mexico
169,703 15%
6.8m ha
Latin America 40%
17.3m ha
Oceana $244 USD
highest per capital spending is in
Switzerland
1. The World of Organic Agriculture: Statistics & Emerging Trends 2016, FiBL & IFOAM - Organics International, 2016
TE Organic Cotton Market Report © 2016 •• 8
ORGANIC COTTON ANNUAL SAVINGS
The 2014/15 organic cotton harvest represents...
353,303 ha = 660,229 NFL “ An organic farming system is one that sustains the health
of soils, ecosystems, and people. It relies on ecological
processes, biodiversity, and cycles adapted to local
organic certified land football fields conditions rather than the use of artificial elements such
as pesticides and other chemicals that cause adverse
193,767 = 968,835
farming family members
effects. Organic farming combines tradition, innovation,
and science and promotes fair relationships and a good
organic farmers quality of life for everyone involved.
112,488 mt
organic cotton fiber
- IFOAM - Organics International
...which equates to a potential saving (compared to conventional cotton) of:
218 b
liters of water2 = 87,201
olympic sized pools
317,973 kg
hazardous pesticides3
288.7 m
kilowatts of energy2
= 60 549,314 yrs
of 60 watt light bulb
41.3 m
kg of chemical fertilizers4
92.5 m
kg of CO22 = 13,572 times
driving an average car
around the world
No
use of GMO seeds
2. Water, Energy and CO2savings based on “Textile Exchange and thinkstep, 2014. Life Cycle Assessment of Organic Cotton.”
Note: The values for organic and conventional cotton reported here are derived from two independent peer-reviewed studies whose comparability has not been verified. Therefore the comparison is of indicative value only.
3. Hazardous Pesticide savings based on “International Cotton Advisory Comittee (ICAC)-Social, Environmental and Economic Performance (SEEP), 2010. Pesticide1 use in cotton in Australia, Brazil, India, Turkey and USA”. Calculations are estimated on
India’s pesticide use.
4. Chemical Fertilizer savings based on “Food and Agriculture Organization of the United Nations (FAO), 2005. Fertilizer Use by Crop in India”. Calculations are estimated on India’s chemical use.
TE Organic Cotton Market Report © 2016 •• 9
MARKET REVIEW
No Nasties
1
The Preferred Fibers
Race-To-The-Top Is On
The gap between
2
Origins Matter
Companies are talking
3
Brand “Organic” is
Building
Organic represents a
4
The Rise of
Transparency
The tragic event of the
5
Going for Gold with
Organic Fair Trade
Until recently, Organic
6
Organic Cotton is a
Launching Pad
What companies have
companies that are leading more about their preferred strong, clearly understood Rana Plaza factory collapse Fair Trade (OFT) was the learned from organic
on sustainability and those fiber and materials and well-established mark is one of the triggers for choice of the smaller, cotton is being applied
that aren’t is closing. Big, portfolios and where of sustainability, spreading the “fashion revolution” ethically-driven company to preferred fiber and
familiar brands through their products originate. from the food, health and that is now taking place. working with smaller materials such as recycled
to smaller, more nimble Communications are fresh beauty sectors into fibers It’s more common now for cotton volumes - this is all polyester, lyocell, and
ones, who are also the and more vocal about their and textiles. Interest in companies to share stories changing. There are signs others. The combination
early adopters of organic use of organic, recycled, healthy eating connects about people behind of growth across the board, of environmental, social,
cotton, are repositioning and more sustainable raw with a healthy lifestyle and their labels. The farmer with larger companies and economic benefits
and working harder to materials. further connects to choices is no longer invisible and releasing collections in that organic cotton brings
lead the way to the top for for a healthy planet and consumers care about OFT. provides a foundation for
everyone. healthy people. This trend factory conditions, living considering the impact of
is emerging in newer wages, and where and by other fiber choices and
growth economies such as whom their clothes were building a portfolio.
India and China. made.
TE Organic Cotton Market Report © 2016 •• 10ORGANIC COTTON MARKET Knowledge Cotton Apparel
Market Value Trend (USD/billion) Top 10 Users’ Cotton Portfolio Breakdown
Organic
$15.76 Stable Cotton 20.2%
Organic
billion USD growth Cotton 29.6%
market value Preferred
Cotton 3.2%
Market Value Preferred
Cotton 7.2%
Market value from 2014 to 2015 remains stable, after years of steady growth as more brands and retailers enter
the sector, or expand their organic cotton collections. [è Methodology ]
An Expanding Organic Portfolio
Last year TE started collecting information on each company’s fiber portfolio via survey submission. Which
means that this year we can start comparing year-on-year trends.
The chart on the right shows the aggregated average cotton portfolio of the Top 10 Users of Organic Cotton and Conventional Conventional
how it has changed from 2014 to 2015. As this is an aggregated average as opposed to a weighted average it is Cotton 76.6% Cotton 63.2%
indicative of a trend towards an expanding organic and preferred cotton portfolio and a relative shrinking share
of conventional. It is encouraging to see the increased adoption of organic and other preferred cottons by from
one year to the next.
All companies in the Top 10 Users of organic are certifying their supply chain to either the Organic Content
Standard (OCS) and the Global Organic Content Standard (GOTS).
In September the Preferred Fiber & Materials Benchmark Sector Report will be released. This report will provide
a deeper sector analysis of how companies are systematically measuring, managing and integrating a preferred 2014 2015
fiber and materials strategy into mainstream business operations. [ è Preferred Fiber & Materials Benchmark ]
TE Organic Cotton Market Report © 2016 •• 11TOP USERS BY VOLUME Stanley & Stella
TE congratulates all brands and retailers featured in our
leaderboards and in the 100% Club. From an entry of 89
companies, they are setting the pace for the industry.
1
C&A takes the number one spot on the Top Users By Volume
chart for the second year running. H&M and Tchibo remain in the
2 second and third positions, respectively.
Inditex made a significant move from the ninth position last
3 year up to fourth spot. Nike, Decathlon and Carrefour remain
long-standing top volume users, and Lindex remains a firm
eighth. Returning to the top volume users this year is U.S. retailer
4 Williams-Sonoma and we welcome the arrival of Belgium’s 100
percent organic cotton brand Stanley & Stella.
5
6
“ Williams-Sonoma, Inc. is committed to increasing the
percentage of organic cotton in our textile collections.
Organic product offerings enable us to meet our
goal of providing beautifully designed, high quality
products that are responsibly made. We are thrilled to
7 be included in the top 10 list of organic cotton users,
and congratulate all of the companies who are playing
8 a role in the worldwide adoption of responsibly sourced
cotton.
9 - Adrian Sherman, Director, Corporate Responsibility,
Williams-Sonoma, Inc.
10
C&A
TE Organic Cotton Market Report © 2016 •• 12TOP USERS BY GROWTH PACT
The Top Users By Growth chart recognizes the companies that have
made the biggest increases in their uptake of organic cotton over the
past year.
1
Continental Clothing’s Earth Positive brand and Inditex experienced
significant growth and sit at number one and two in the growth
2 chart.
Growth by Stanley & Stella places the company in the top 10 for both
3 volume and growth.
4
“ Stanley & Stella team is proud to enter the 2015 Textile
Exchange Top 10 ranking of Organic Cotton Users. This
achievement is a result of our spectacular growth and
5 successes on the imprint market and of our strong
commitment to promote the use of organic cotton and other
sustainable raw materials.
6
- Jean Chabert, CEO, Stanley & Stella S.A.
Considerable expansion of organic by Volcom, Loomstate, PACT,
7
Stella McCartney and Continental bring a host of new names into the
growth charts.
8
9
“ While there’s still more work to do, being ranked on the
Organic Cotton Growth Leaders Board is an exciting honor
for Volcom. It celebrates the progress we’ve made, and
paints a path for our forward looking commitments and
targets for organic cotton use.
10
Inditex
- Derek Sabori, Sustainability Advisor, Volcom
TE Organic Cotton Market Report © 2016 •• 13RACE-TO-THE-TOP Portico
TE introduced Race-To-The-Top to our suite of leaderboards last year. It
1 celebrates those companies who are converting their ranges to organic
cotton, in order of percentage of total cotton consumption. This category
does not include companies who use 100 percent organic cotton. You
“ In 2015, nearly 80 percent of our cotton came
from responsible sources. Out of these, 85
percent was certified organic cotton. Still,
= 2 will find that group of companies in our 100% Club. we at Tchibo believe this is not enough. In
order to achieve a 100 percent sustainable
business, we have to additionally engage in
= 2 projects that go beyond certification. This is
why we support the Appachi Eco-Logic project
3 in India. Appachi helps farmers implement
environmentally sound methods of cultivation,
and improves their quality of life by providing
4 them with a guaranteed source of income.
This “inclusive growth model” brings about
social, economic and environmental change
5 along its value chain. For us, this is a great
opportunity to support the empowerment
6 of smallholder farmers while working together
with actors along the textile supply chain.
- Nanda Bergstein,
7
Head of Vendor Relations &
Sustainability Non Food, Tchibo
8
Race To The Top sees the greatest number of new
9 entries - Norrøna, People Tree, Mara Hoffman,
Outerknown, and Raven & Lily. Longstanding leaders
EILEEN FISHER, prAna, Stella McCartney, Tchibo and
Skunkfunk remain in the “Race”. All companies are
10 Skunkfunk
committed to converting their cotton to organic.
TE Organic Cotton Market Report © 2016 •• 14100% CLUB Boll & Branch
The number of brands and retailers
featured in the 100% Club has grown
considerably from 18 to 24. These are
the brands that have either started
out 100 percent organic or have made
the switch, like Patagonia. The other
distinguishing feature is that they have,
like all companies featured in the report,
shared consumption data with TE and
are taking part in the Preferred Fiber
& Materials Benchmark (report to be
published in September).
We anticipate welcoming the lead
players from the Race To The Top to the
100% Club over time!
CREAM Workwear
“ Coyuchi is proud to be part of the 100% Club as we have
been committed to organic cotton since the founding of the
company in 1991. Organic cotton and sustainably produced
textiles are why Coyuchi came to be and will continue to be
at the heart of what we do.
- Eileen Mockus, CEO, Coyuchi
TE Organic Cotton Market Report © 2016 •• 15ORGANIC FAIR TRADE TOP 10 Dibella
1 “ We’re excited to see the trend of more and more
brands sourcing Fairtrade and organic cotton.
Fairtrade cotton farmers are aware of the market
demand and the majority of them have chosen
2 organic certification in addition to Fairtrade. Both
models complement each other and we’re very
happy to see them grow together. While Fairtrade
3 focuses on the social and economic aspects
of sustainability, our standards also include
4 environmental requirements. Fairtrade farmers often
use the Fairtrade Premium to train their communities
in organic and sustainable techniques like
5 composting and integrating recycled materials, or to
achieve organic certification. With additional organic
certification, Fairtrade cotton farmers make an even
6 stronger commitment to protecting the natural
environment and build long-term sustainability.
7 - Martin Hill, CEO, Fairtrade International
Coop Switzerland
8 This year we introduce a new leaderboard - the Organic Fair Trade (OFT) Top 10. It could be premature to say, but we are
speculating that OFT will grow as eco-entrepreneurs jump straight into this deep green option for cotton and as eco-pioneers
move along the sustainability continuum.
9
Our first year sees Coop Switzerland out in front with their bioRe accredited OFT cotton. The German brand Cotonea, sourcing
direct from Kyrgyzstan and Uganda, comes in second. Boll & Branch enter the table at third place. Dynamic, young brands PACT
10 and ARMEDANGELS began life as OFT. It’s exciting to see pioneer prAna move along the continuum and come in at number
nine in the OFT stakes. New to TE are French workwear hire brand Elis, UK studentwear brand Epona, and Mini Rodini, a bright
new kidswear brand from Sweden.
TE Organic Cotton Market Report © 2016 •• 16ORGANIC COTTON BY MARKET SECTOR +Olive
Organic cotton reaches most cotton markets these days; it can be found in fashion, family and baby
wear, home textiles, outdoor and sports, and is beginning to make inroads into previously hard-to-reach
sectors, such as luxury and personal care. Let’s take a look at some of the biggest, fastest-growing, and
newest markets for organic cotton textile products.
“ Over the past year, we saw a solid and steady demand
for organic cotton merchandise within the music and
entertainment sector, with growth in new business and a
continued strong interest in premium quality sustainable
Sector Focus: Business-To-Business products.
One of the growth areas for the organic, Fair Trade, eco-friendly and ethical clothing market is the - Mariusz Stochaj, Continental Clothing Company
business-to-business (B2B) sector. Whether it’s merchandise (such as tee shirts and hoodies) promoting
a music festival, rock band, science museum, or environmental campaign, the trend is to combine the
promotion with a garment’s green credentials. The wholesale of eco-friendly merchandise, student and
workwear is also infiltrating and thriving in the food, education, health and beauty sectors, particularly in
cafes, restaurants, wholefood stores, universities, spas and retreats where employees and students are
increasingly sporting organic tees, smocks, and other organic “uniforms.”
“ The B2B sector holds great potential for scaling up the use of organic cotton and sustainable
clothing. More and more organizations report on their CSR activities, so making their team
clothing or merchandise sustainably sourced is a relatively simple way to demonstrate impact.
Reaching a buyer at an organization sourcing 5000 t-shirts is easier than reaching 5000
individual consumers, and so we are putting a lot of effort into education and advocating the
strong positive effects of sustainable sourcing to the trade.
- Prama Bhardwaj, CEO, Mantis World
This is all good news for the small-scale organic (and Fair Trade) cotton farmer since sourcing parameters
don’t change radically throughout the year, and with a little pre-planning, a buyer should be able to send
messages back to their suppliers with enough consistency to help farmers plan for the demand. It also
offers a great story – back to farm – to share with the end user.
Continental Clothing Company
TE Organic Cotton Market Report © 2016 •• 17Sector Focus: Family & Fashion
Continental Clothing Company’s Earth Positive® -
Apparel to combat climate change After many years of aggressive price competition in this sector, there are signs that business
strategies are changing tack, with some of the biggest and most successful retailers reviewing
Continental Clothing Company Limited creates high-quality, their target markets. The biggest users of organic cotton see sustainability as integral to long-
term business resilience. C&A and Carrefour, for example, are shifting the use of certified organic
expertly-styled garments for markets such as fashion retail,
and other preferred fibers toward the center of their business strategies [è How To Build A Truly
music merchandise, corporate promotions, and leisure. Resilient Organic Cotton Business ].
Continental’s mission is “To inspire and implement solutions
to the environmental crisis.” The company owns three brands For small and medium-sized ethically-driven companies, combining design, innovation, creativity
– Continental® (the original brand), EarthPositive® (made from and sustainability is proving to be a powerful mix, appealing to a growing number of “eco-lifestylers.”
organic or TENCEL® fibers) and Salvage® (recycled). Alongside a general raising of awareness and choice, campaigns such as Fashion Revolution
(which came in response to the Rana Plaza complex collapse in Dhaka, Bangladesh in 2013, where
The EarthPositive® line of shirts minimizes environmental impact 1,134 people were killed and more than 2,500 injured) are raising consumer expectations that
in all production stages through organic farming – all shirts are fashion should be safe and ethical, as well as fun and trendy.
100 percent certified organic cotton, utilizing rain-fed irrigation
and renewable energy. All cotton waste generated is either
returned to the field as an organic fertilizer or used for other
textile and upholstery products manufactured in the local area.
Wastewater from the factory is thoroughly treated, all shirts are
packaged using biodegradable or 100 percent recycled materials,
and Continental has a “no airfreight” policy – all goods are
shipped by sea.
Continental is now moving into Fairtrade with organic cotton
t-shirts and hooded sweatshirts under its new label Fair Share.
The decision to invest in Fairtrade cotton is a result of growing
market demand for ethically-sourced clothing. Continental source
from Pratima Agro Fairtrade co-operative in Odisha, India. The
farmers are investing their Fairtrade certification premiums in
projects to enable women to build businesses and market goods
to provide them with an independent income.
Mantis World
TE Organic Cotton Market Report © 2016 •• 18shared risk and reward of supply chain management through the chain. “Constancy
and forward planning reduces business risk for the entire supply chain, especially at the
farm end where certainty of uptake helps farmers plan their planting.”
Kidswear - Kids and babywear is a well-established market for organic fibers.
Companies say that customers are attracted to its pesticide-free status. Mini Rodini, one
of Scandinavia’s fastest growing childrenswear brands, is an example of success in this
category, selling Organic Fair Trade products in department stores and independent
shops all around the world, including Harvey Nichols in Kuwait, Selfridges in London,
and Barneys in New York.
“ At Mini Rodini, we want what we do to matter. We take our ethical and
sustainable commitment very seriously, and it will always be the most
important factor in Mini Rodini’s growth. It’s not just about getting better at
what we do, but wanting the very best and a better world. This commitment
affects decision-making at all levels in our organization, as it is an on-going
process that demands an innovative approach to our whole business long-
term.
- Cassandra Rhodin, Mini Rodini , Founder and children’s illustrator
Stanley & Stella Denim continues to be a hotbed for innovation in sustainability, from organic or
recycled raw materials, waterless and chemical-free dyeing and finishing, to innovative
business models such as leaseback schemes – progressive jean companies, such as
G-Star and MUD Jeans, are doing it all. Dion Vijgeboom at MUD Jeans says:
Fast-Growing Product Categories
Basics - The most reliable product line for organic cotton could possibly be the humble
“basic.” Underwear, leggings, camisoles, and tees in everyday colors make “basics” one
of the easiest product lines to commit to fiber volumes ahead of time. PACT | ORGANIC’s
“ The company’s commitment to slow fashion, no fast collections or “crazy”
designs – just high-quality, basic, clean jeans, is one of the secrets to the
success of MUD Jeans.
nationwide distribution at Target and Whole Foods demonstrates mainstream
retailers’ need to meet millennial consumers’ demands for brands that offer authentic
experiences and make products that don’t harm people or the planet. Brenden Synnott,
CEO of PACT | ORGANIC, also understands the needs of the farmers and explains the
TE Organic Cotton Market Report © 2016 •• 19C&A – For The Love Of Fashion
We care deeply about our customers and what’s important to them.
In 2015, we completed our first-ever global survey of consumer perspectives on sustainability to
understand what our customers think about sustainability, where they recognize our progress,
and where we can make a difference. Consumers have told us clearly what issues matter the most
to them. They want to know more about product attributes and their positive environmental and
social impacts, and this includes our journey toward more sustainable cotton.
This study shows that our Bio Cotton initiative is amongst the most known of all initiatives,
especially in Europe, and thus, very important for our customers. So for the coming years we have
redefined our cotton portfolio; reaffirming our commitment and support for a stronger organic
cotton industry. This is demonstrated through our leadership in the Organic Cotton Accelerator,
through our shared support of the Cotton 2040 project and Better Cotton Initiative, along with the
C&A Foundation.
We want to increase the overall consumer awareness on the importance of shifting to organic
cotton. So to celebrate our 175th anniversary this year, we have teamed up with renowned
broadcaster, the National Geographic Channel, to explore more sustainable cotton practices
around the world on film. The documentary For the Love of Fashion™ provides invaluable insights
to highlight the importance of this shift in the cotton industry and follows Alexandra Cousteau on
her journey across India, the U.S. and Europe to find more sustainable ways of loving fashion.
[ è Movie Clips: For The Love Of Fashion ]
Tchibo
TE Organic Cotton Market Report © 2016 •• 20Skunkfunk – No Compromise
Mikel Feijo Elzo, Founder, Skunkfunk
Skunkfunk was born with a desire to
create something different, catering to
a young and free-spirited crowd. Forty
collections later, the idea remains the
same but we have evolved, grown and
matured. During this voyage we have
added our experiences and generated
more values, like the will of generating
fashion from an ethical point of view
Skunkfunk
without compromising the core value of
creativity and design. We have done this
to be proud of what we do, even if most of
the 38 markets in which Skunkfunk is sold Carrefour – From Just One Loaf
are not willing to pay extra for things done
French retailer Carrefour is fully convinced that if it wants to be around for generations to come, sustainability
in a cleaner way.
must be at the core of its business strategy today. Carrefour’s steps toward sustainability started years ago,
Slowly but steadily, we have increased pioneering supermarket organic food. In 1992, Carrefour introduced its first organic product - a Boule Bio
the share of our collection using (organic loaf) - into the bakery department. In 2005, Carrefour launched its first organic cotton textile products
environmentally-preferred fibers up to 62 and, in 2009, launched a range of linens called Carrefour Home alongside a clothing line called TEX Bio,
percent, and aim to reach 100 percent followed by an expanded collection of organic cotton bed and bath linen. There are now more than 460 organic
by 2020. Key in that process has been cotton products available in the TEX ranges of Carrefour and Carrefour Home. Products are certified to OEKO-
optimizing the way we design and operate TEX Standard 100 and the Global Organic Textile Standard. In 2013, the first Carrefour Bio store opened in Paris,
in our supply chain in an effort to offset offering a complete range of organic products, from food to beauty to clothing. It is anticipated that another 10
the cost impact sustainability has, while branches of Carrefour Bio will be in operation by the end of 2016.
not compromising on our core creativity
“Organic for Carrefour is not something new,” Richard Vavasseur, director of premium brands at Carrefour, said.
values.
“We sold more than 125 million organic products in 2015, which means Carrefour Bio is France’s largest organic
banner.”
TE Organic Cotton Market Report © 2016 •• 21Cotonea – Connecting Farmers From Kyrgyzstan And Uganda To The European Market
Elmer & Zweifel (EZ), founded in 1855, has a long history as a textile company. Quality has always been
“ From its origins as a pioneer of ecological trading in
the organic movement of the 1970s, German brand
Triaz has attracted a customer base which is well
aware of the environmental and social issues in the
a priority for EZ, which produces highly technical products, using only organic cotton.
textile industry. They expect the highest standards
The company is now branching out to the family apparel and home textile market through its and full transparency from the company. We are
consumer-facing brand, Cotonea. The company knows it faces pricing challenges as it strives to find always searching for and developing new, more
a price customers are willing to pay while holding true to its ethical commitments at the cotton farm sustainable alternatives.
and through the supply chain. However, Cotonea is committed to doing good and is confident in its - Katharina Hupfer, CEO, Triaz Group
technical know-how, and its ability to provide quality products from its transparent organic cotton
sources, which it controls from fiber to finished product.
Cotonea is committed to cotton cultivation in Uganda and, in close cooperation with the Swiss
organization Helvetas, in Kyrgyzstan. Through a contract of guaranteed purchase, Cotonea gives the
farmers financial security and strengthens their self-confidence. Cotonea is in direct contact with
the cotton producers, pays a Fair Trade price, and has people they trust, including traders Plexus and
Reinhart, on the ground to support capacity building and logistics.
Cotonea works alongside the Gulu Agricultural Development Company in Uganda. Over the past two
years, 18,000 farmers have been trained in organic cotton production and 40,000 more are on the
waiting list. They don’t only grow cotton - one of the key successes is growing cotton in rotation with
organic sesame sold to the European market, and the farmers are now trialing organic chilies.
CEO Roland Stelzer says: “If you look at Uganda, you see a country recovering from the ravages of
20 years of civil war. Young guys are starting to farm but are getting cotton fiber yields of only 180-
250 kg/ha, which for an experienced farmer would be 1600 kg/ha. We need to preserve and build up
knowledge in the farming communities, because this is where livelihoods can be improved. We have
a huge task ahead, but if we can build the market for Ugandan organic we can help build a future for
farmers and be part of the recovery and repair of Uganda. That would be truly satisfying and a game-
changer for the Ugandan farming communities.”
[ è Market Review: Uganda ] Mara Hoffman
TE Organic Cotton Market Report © 2016 •• 22Q&A With Julia Aruni Kirschner, Sustainability Manager, ARMEDANGELS
In January 2007, two young men from Cologne,
Germany decided to change the world of fashion. Q: Are you finding that the consumer you
attract cares about what you are doing? Q: Is business growing?
Definitely. People are starting to be more The Fair Fashion Market is definitely growing. Like
Led by their love for beautiful products and shocked I said before, our sales figures and retail requests
conscious about what they wear, what it’s
by the conditions in the textile industry, they wanted prove it. When ARMEDANGELS was founded in
made of, where it is produced, and by whom.
to show the big players that it can be done better. No 2007, we had a team of three in a shared office
That’s great. When we launched our first travel
wage slavery, no chemical madness, no cheap mass space in Cologne, only selling our products via
journal this month (we traveled to India to meet
production. Instead, they started to make beautiful, our online shop. Today we are almost 60 people,
Bhimabhai, one of our organic cotton farmers) -
Organic Fair Trade clothes and so, ARMEDANGELS selling online and offline in more than 800 Point-
the feedback was tremendous. The focus of our
was born. of Sales in 18 countries.
trip was to show the people behind the product.
These transparent and real stories are essential
Today, they are a team of 60 and with four collections
Q:
to take people along and make them understand
every year they are one of the leading fair-fashion Anything more you would like to share?
why we are doing what we are doing. We can’t
companies in Germany. “And hell yes, we are proud
change the game alone, but together we can be
of it. We are passionate, we love what we do and we Let’s give an organic cotton farmer the last word.
that change.
never stop challenging ourselves.” Before we left India, Bhimabhai Malakiya told us:
But even though people think about sustainability “Tell the people in Europe to buy more organic
Q: Do you think your philosophy - and the
desirability of your products - go together? Are
customers willing to pay?
more and more, in the end, they buy what they
like. Design and price still come first for the
cotton. Even your competitors.” That’s what we
do…
majority of people. Fair enough. Nobody wants to
Yes! Our mission: To combine fair working conditions wear an ugly shirt, no matter how fair and organic
and sustainable, high-quality materials with it is. This is the balancing act we have to manage.
beautiful design. We don‘t think there needs to be Clothing, which is fair, organic, and beautiful at the
a contradiction between fair, organic, and beautiful same time. There’s still a long way to go, but that’s
clothing. That’s what we want to convey with our what you have to deal with if you want to become
collection, and the concept works. Our sales figures the fairest fashion label in the world.
and retail requests prove it.
[èTravel Journal: Behind The Fields ]
La Siesta
TE Organic Cotton Market Report © 2016 •• 23Sector Focus: Home Textiles
In this section, we highlight the rise of the new entrepreneur. Joining long-time and well-
established favorites, such as Portico, William-Sonoma’s West Elm, and Coyuchi, are
new businesses coming into the market with beautiful, high-quality, and ethical home
furnishings. This reflects a growth in the lifestyle market as it evolves from food and
health & beauty to clothing and home. Priorities are transparency, quality, and beauty
that tell a story right back to the cotton field. Boll & Branch
West Elm – Design To Impact
Jennifer Gootman, Director of Social Consciousness & Innovation, West Elm
+Olive – Making Things Beautiful
West Elm, a division of Williams-Sonoma Inc., is a Brooklyn-based home +Olive has positioned itself as “the next generation of luxury and sustainable
furnishings retailer that has been helping customers express their personal furniture and a cutting edge retail concept” in Carmel, California. Ashley
style at home since 2002. Our motto “A little greener every day.” Sustainability Yeates, the Principal of AYI & Associates, an exclusive and boutique design
has been ingrained in the ethos of the brand since the beginning. Over firm, created the line to resolve frustrations with a lack of quality and natural
the past couple of years, we’ve been transitioning our bedding collections furniture options available on the market.
to organic cotton because we’ve seen our customers asking for organic
“+Olive lifestyle line accurately represents the character of my Northern
options, and we know it’s the right thing to do for farmers and communities
California community, which is deeply committed to preserving nature,
where the cotton is grown. We work closely with our suppliers to certify their
protecting the environment, practicing overall wellness, and recognizing our
facilities and source certified materials so that we can provide transparency
impact on multi-generations. On a superficial level, the concept is named
and assurances to customers. We often use the phrase “Design to Impact”
after my long-haired, red dapple dachshund, Olive, who has olive green eyes;
to describe our work because we bring our customers great design and
on a more meaningful level, +Olive represents Biblical references to the
beautiful products first and foremost, but we are also focused on the impact
strength and longevity of the Olive Tree,” Ashley Yeates explains.
those products have on the people making them and the environments
where they are produced. That’s why, in addition to sustainability, we are +Olive is currently in production in California, Arizona, and New Mexico. They
committed to supply chain programs like Fair Trade Certification, which gives are members of the Sustainable Furnishing Council, are using the Global
more back to workers in the form of Fair Trade premiums. We are growing Organic Textile Standards, and have wood-based manufacturing processes
our commitment to Organic and Fair Trade substantially. We are actively certified by the Forest Stewardship Council. The +Olive brand encompasses
transitioning all of our 100 percent cotton bedding to organic by 2017 and multiple furniture lines and encourages consumer creativity and product
looking towards organic content for all bedding within the next few years. uniqueness, while adhering to soft impact manufacturing practices.
TE Organic Cotton Market Report © 2016 •• 24Q&A With Scott Tannen, Boll & Branch
Q: What was the inspiration behind Boll &
Branch?
with cotton farmers in central and southern India and
is certified by Fair Trade USA, we are able to ethically
source from smallholder organic cotton farmers in
Most of all, when a brand is built upon
the notion of social good, transparency
and openness are crucial. We now receive
It all started when Missy and I were shopping for new
India. Unlike most bedding brands, startup or not, we unsolicited ideas and feedback from our
sheets while renovating our bedroom. After spending
know exactly where every ounce of cotton we use customers all the time - and we love it. Some
an entire day going store to store, no one could tell us
is from, down to the parcel of land the cotton was of the ideas for our upcoming products have
where the sheets came from, how they were made, or
grown on. come directly from our customers. It is one of
the difference between a $500 USD set and a $50 USD
the reasons that word-of-mouth has been our
Q:
set. It was only after digging in and fully researching
How are you connecting with your customer? most successful form of advertising!
the textile industry, and more specifically the cotton
And how has the customer responded?
Q:
trade, we came to find out that it was wrought with
How are you “balancing the books” –
dishonesty and manipulation (and had been since its
Our customers value quality, luxury products and are for instance, ensuring fair prices and
origin). We believed that the bed sheet needed to be
looking for brands that are rooted in fairness, in both good conditions of trade at the farm
recreated, from the ground up. Upon this realization, we
supply chain and price. They also know that every gate, paying a living wage, and making
decided to start Boll & Branch and tackle the problem
Boll & Branch product they receive is completely a profit?
at its root, starting with the cotton seed itself, and
unique, beautiful, and impossible to find elsewhere.
empowering those that farm one of the world’s most We designed our business and supply
Building a close relationship with our customers
sought after crops, all the way through the supply chain chain models to ensure Boll & Branch never
has been a top priority since the day we launched.
to the moment our product reaches the customer’s compromises on quality or ethics around the
Rather than following a more traditional path, we
home. supply chain, and that through our direct-
work very hard to open lines of communications with
to-consumer model, we’re cutting out costs
Q:
these stakeholders (after all, as a startup, our earliest
How did you set up your supply chain, and for consumers while also avoiding a lot of
customers truly are stakeholders) by doing things a
how important was it to be part of a supply overhead in terms of wholesale and real
bit differently. Even two years later, our customers are
network? estate associated with traditional models.
still quite surprised to receive a hand-written note or
We know that in order to have a truly traceable, ethical, a phone call from our Founders thanking them for
and sustainable supply chain we would have to own their purchase or a personal email from one of our
it in its entirety. Through forging a relationship with department heads soliciting their opinion on a new
Chetna Organic, a nonprofit organization that works product or idea.
TE Organic Cotton Market Report © 2016 •• 25Sector Focus: Luxury
Until fairly recently, luxury and sustainability were not mentioned in the same
conversation – at least not out loud. These days the links are clear to all luxury brands
“ As well as increasing consumption we are beginning to support specific farm
level organic cotton projects - the first one that Stella McCartney is working
with is Cottonforlife. It’s still in the early days but we are committed to building
with an interest in the long-term availability of their raw materials, from cotton to direct links with the farmers who grow our organic cotton, so that we can tell
cashmere to leather. their stories to our customers.
Luxury brands are starting to develop long-term strategies for sustainability and, on - Claire Bergkamp, Head of Stella McCartney’s Sustainability Program.
the back of these commitments, are talking more openly about it. Language, such
as “provenance,” “origins,” “heritage,” “authenticity” and “craftsmanship”, once used EILEEN FISHER – 100% Organic By 2020
to express commitment to product quality, is now doubling as an appreciation for
environmental and social sustainability. In 2015 EILEEN FISHER launched VISION2020 with bold social and environmental
goals. A year later, the company has made significant progress in meeting their fiber
More Work To Do To Grow Organic Cotton For The Luxury Market commitments. This spring, 83 percent of EILEEN FISHER’s linen and 92 percent of
cotton was organic. By 2020, all of it will be. The VISION2020 fiber commitments have
While there is organic cotton available in the staple lengths required for luxury, grown given the EILEEN FISHER teams tremendous focus—and their manufacturing partners a
in countries such as Turkey, Peru, Egypt, Israel, India and Tajikistan, there needs to be chance to do things differently.
greater volumes, better market linkages, and increased consumer awareness.
Leaders In Responsible Luxury
Kering Group has made a shift towards an increased use of organic cotton, notably via
the Group’s internal Organic Cotton Platform, which launched in 2015. The Platform acts
as a support mechanism for the Group’s brands, and was developed following a detailed
evaluation by Kering of the challenges and constraints luxury brands face in sourcing
high-quality organic cotton. The Group’s brands are now working to integrate more
organic cotton to their collections, and in 2015 organic accounted for 65 percent of all
cotton used by Stella McCartney.
[ è Kering Group’s 2016 Sustainability Targets Report ]
[ èCottonforlife ]
EILEEN FISHER
TE Organic Cotton Market Report © 2016 •• 26Sector Focus: Outdoor
The Outdoor Industry, by its very nature, recognizes the profound connection between
its business practices and the sustainability of the planet. Many outdoor companies
have incorporated sustainability into their corporate philosophy and are setting targets
for transition to more sustainable fibers and materials.
Pamela Ravasio, of the European Outdoor Group, says that traceability is fundamental to
this transition. According to Pamela:
“ Traceability is important for us, and many of our sustainability efforts center
around this concept. The use of organic cotton - in addition to the evident
advantages of its much lower environmental and social footprint - offers the
advantage of being traceable. Therefore, one of its strengths complies with
one of our key needs as an industry.
While outdoor apparel tends to be heavier on synthetics and “performance” fabrics,
such as polyester and nylon, cotton is a popular natural fiber for basics, hiking gear, and Norrøna
summer collections. This is particularly evident with outdoor brands that have expanded
their collections or incorporated lifestyle and leisurewear into their offering. Eco pioneers such as MEC and Patagonia converted all their cotton usage to organic a
while back, and others, such as Norrøna, Kathmandu, Fjällräven, and Vaude, are on the
Greg Scott at Mountain Equipment Coop (MEC) gives his view on quality: way to 100 percent organic or are adopting a portfolio approach that includes organic,
Better Cotton, and Fair Trade.
“ “At MEC, a quality product isn’t just about performance fabrics and
construction; it’s also about ensuring the materials and the manufacturing
processes are environmentally sound. Organically grown cotton in our
Brad Boren of Norrøna tells us they set their cotton goal at 100 percent organic and
have now reached it!
products is one way we demonstrate this commitment. Every action counts. [è Patagonia - 20 Years Organic ]
“ Since 2005 we have only used organic cotton for all products except for one
of our oldest; an anorak which was used on Arctic expeditions. This was a
special technical cotton which took six years to shift over. Today, we have
reached our goal of 100 percent organic cotton.
TE Organic Cotton Market Report © 2016 •• 27You can also read
